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VDMA looks forward to IFFA

The VDMA announced that manufacturers of food and packaging machinery were able to achieve an increase of 7 per cent in 2021.

Manufacturers of food and packaging machinery were able to achieve an increase in production of 7 per cent in 2021. The VDMA announced this at a press conference and also referred to the positive mood in the industry. They are particularly looking forward to IFFA at the end of May.

On the occasion of the press conference with the daily and business press on the IFFA 2022 reports the VDMA German Food Processing and Packaging Machinery Association that German production of food processing and packaging machinery increased by 7 per cent to 14.8 billion euros in 2021. This means that the Industry sales in the fourth-largest mechanical engineering sector almost back to pre-crisis level from 2019 with an amount of 15.3 euros.

„Sales of process technology for the meat and protein industry - the strongest exhibition area at IFFA - did not buck the trend in the first year of coronavirus in 2020. In 2021, machine production increased by a pleasing 6 per cent to around 1.3 billion euros.“

Klaus Schröter, Chairman of the IFFA Advisory Board and Chairman of the VDMA Meat Processing Machinery Division

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In both 2020 and 2021, machine manufacturers were able to enjoy a sustained high level of investment activity in Germany. In the year In 2021, domestic sales increased by 8 per cent to 384 million euros. „Low interest rates, KFW funding opportunities for process and procedure conversions that lead to energy and resource savings and investments in automation solutions have provided significant impetus,“ comments Schröter on business development in 2021.

Rising demand from abroad

In 2021, the international business was particularly Most important foreign market USA by an increase in demand of over 23 per cent. Machines worth more than 100 million euros went from Germany to the USA in 2021. Deliveries to China also saw double-digit growth. Demand from the EU-27, the most important sales region with a share of 39 per cent, fell below the previous year's high level. The bottom line companies' foreign deliveries increased by around 3 per cent in 2021 above the previous year's figure and reached an all-time high.

„In the US food industry, it is very difficult to find qualified operators. This is forcing companies to invest in modern technologies and automation solutions for safe and stable production. And the coronavirus pandemic has intensified this trend.“

Klaus Schröter

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Klaus Schröter (Picture: VDMA)

Economic brakes in 2021 were and continue to be the ongoing disruptions to supply chains and shortages on the materials and procurement markets. The war in Ukraine and China's zero-Covid policy are further exacerbating the situation. According to a VDMA survey of its members in April 2022, the supply situation has deteriorated significantly, particularly for metals and metal products. Many companies do not expect the situation to ease in the coming months.

„The order books in our industry are currently well filled, but we cannot estimate how the ongoing material shortages and price increases for energy will affect business development this year.“

Klaus Schröter

Looking forward to the IFFA

The outlook for the food processing and packaging machinery sector remains positive, despite the current difficult conditions. Investments in safe, flexible and economical plant technology for production, processing and packaging are therefore more likely to be steady and less volatile than in other customer sectors of the mechanical engineering industry. The war in Ukraine is not yet having an impact on incoming orders in the food processing and packaging machinery sector. The Orders increased by 4 per cent in March 2022, primarily driven by orders from non-European countries.

The industry expects the world's leading trade fair IFFA 2022, which will take place in Frankfurt from 14 to 19 May, to positive impulses. „We are very much looking forward to the international supplier industry presenting its innovations at the most important industry platform and to finally being able to discuss requirements and trends with the international trade audience in person again,“ says Klaus Schröter, Chairman of the VDMA Meat Processing Machinery Division.

Source: VDMA

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